second avenue subway phase 1 project monthly report ......capacity to execute a project efficiently...

April 2016 Monthly Report 1 MTACC-SAS

PMOC MONTHLY REPORT

Second Avenue Subway Phase 1 (MTACC-SAS) Project

Metropolitan Transportation Authority

New York, New York

Report Period April 1 to April 30, 2016

PMOC Contract No. DTFT6014D00017

Task Order No. 2, Project No. DC-27-5287, Work Order No. 2

Urban Engineers of New York, D. P.C., 2 Penn Plaza, Suite 1103, New York, New York 10121

PMOC Lead: Charles A. Halboth, PE, 212-736-9100; [email protected]

Length of time on project: Five years on project for Urban Engineers


TABLE OF CONTENTS

TABLE OF CONTENTS ..............................................................................................................2

THIRD PARTY DISCLAIMER ...................................................................................................3

REPORT FORMAT AND FOCUS ..............................................................................................3

MONITORING REPORT ............................................................................................................3

1.0 PROJECT STATUS ............................................................................................................3

a. Procurement …………………………………………………………………………….. 3

b. Construction ......................................................................................................................... 3

c. Quality Assurance and Quality Control (QA/QC) ............................................................... 9

2.0 SCHEDULE DATA ...........................................................................................................11

3.0 COST DATA ......................................................................................................................22

4.0 RISK MANAGEMENT ....................................................................................................27

5.0 ELPEP ................................................................................................................................30

6.0 SAFETY AND SECURITY ..............................................................................................31

7.0 ISSUES AND RECOMMENDATIONS ..........................................................................32

APPENDICES

APPENDIX A – ACRONYMS

APPENDIX B – TABLES

Table 1 - Summary of Schedule Dates

Table 2 - Project Budget/Cost

Table 3 - Estimate at Completion

Table 4 - Allocation of Current Working Budget to Standard Cost Categories

Table 5 - Core Accountability Items


THIRD PARTY DISCLAIMER

This report and all subsidiary reports are prepared solely for the Federal Transit Administration

(FTA). This report should not be relied upon by any party, except FTA or the project sponsor, in

accordance with the purposes as described below:

For projects funded through the FTA’s Full Funding Grant Agreement (FFGA) program, FTA

and its Project Management Oversight Contractor (PMOC) use a risk-based assessment process

to review and validate a project sponsor’s cost, budget, and schedule. This risk-based

assessment process is a tool for analyzing project development and management. Moreover, the

assessment process is iterative in nature; any results of an FTA or PMOC risk-based assessment

represent a “snapshot in time” for a particular project under the conditions known at that same

point in time. The status of any assessment may be altered at any time by new information,

changes in circumstances, or further developments in the project, including any specific

measures a sponsor may take to mitigate the risks to project costs, budget, and schedule, or the

strategy a sponsor may develop for project execution.

Therefore, the information in the monthly reports may change from month to month, based on

relevant factors for the current month and/or previous months.

REPORT FORMAT AND FOCUS

This monthly report is submitted in compliance with the terms of the Federal Transit

Administration (FTA) Contract No. DTFT6014D00017. Its purpose is to provide information

and data to assist the FTA as it continually monitors the Grantee’s technical capability and

capacity to execute a project efficiently and effectively, and hence, whether the Grantee

continues to be ready to receive federal funds for further project development.

This report covers the project management activities on the Second Avenue Subway (SAS)

Phase 1 Project managed by MTACC. MTA is the Grantee and financed by the FTA FFGA.

MONITORING REPORT

1.0 PROJECT STATUS

During April, 2016, the MTACC continued advancing SAS Phase 1 to meet a Revenue Service

Date (RSD) of December 30, 2016, within its Current Working Budget (CWB) of $4.451 billion

(exclusive of financing). The overall project is approximately 87.4% complete. Substantial

Completion has been achieved on three of the eight active construction contracts. Progress in

this reporting period is discussed below:

a. Procurement

Procurement of construction contractors for SAS – Phase 1 is complete. Three construction

contracts are currently in the closeout process.

b. Construction

As of April 30, 2016, there are eight (8) active construction contracts on the SAS Phase 1

Project. Construction progress on the active contracts during this period includes:

Contract C-26005 (C2A) 96th Street Site Work and Heavy Civil

Substantial Completion was achieved on November 5, 2013.


Sign off of the final volume of the “As-Built” drawings was expected to be completed

by the end of the 1st Quarter 2016. The contractor was delayed due to incorporation

of the Department of Environmental Protection’s comments into the “As-Built”

drawings. This is the only action left and closeout is now anticipated by May 31,

2016.

Contract C-26010 (C2B) 96th Street Station Civil, Architectural, and MEP

The following near term milestones are associated with activities that are being accelerated to

achieve the December 30, 2016 Revenue Service Date:

ConEd’s completion of the forth electrical feeds which provide facility power to the

station.

Power distribution to the various rooms (breaker panels)

Milestone #14 is ongoing and reported as on schedule. The work has to be completed on

or before May 31, 2016 and includes:

Completion of all work required to perform Field Installation Acceptance

Tests on all electrical and mechanical systems including but not limited to:

o Permanent power to all equipment

o Battery backup for the UPS system

o Chilled water piping and equipment

o Cooling towers and dry coolers

o HVAC ductwork and insulation

o Chillers

o Air handling units

o Fan coil units

o Condenser water piping

o Sump pump equipment

o All work required to provide a controlled environment in rooms that house

electrical and mechanical system equipment

o Provide controlled environment through temporary means if equipment

necessary to provide the controlled environment is unavailable due to testing

Milestone #15 is ongoing and reported as on schedule. The work has to be completed by

May 31, 2016 and includes:

Completion of all work required to perform Field Installation Acceptance

Tests on Tunnel Station Smoke Management (TSSM) system including, but

not limited to:

o Structural elements of the two Ancillary structures

o Fans

o Variable Frequency Drives (VFDs)

o All associated duct work

o Dampers and supervisory panel and control cabinets,

o Permanent power to all equipment


TSSM system equipment




Milestone #16 is ongoing and reported as on schedule. The work has to be completed by

May 31, 2016 and includes:

Completion of all work required to perform Field Installation Acceptance Fire

and Life Safety Systems including, but not limited to:

o Fire protection sprinklers,

o Water mist system

o Fire extinguishers,

o Doors required to prevent the spread of fire

o Dry fire standpipe


Fire and Life Safety system equipment



Contract C-26006 (C3) 63rd Street Station Rehabilitation

The focus of the work effort remains at Area 5 and the progress at Entrance #1;

Work trains are being regularly scheduled on the inactive track for final trash removal

and material delivery;

Area 5 (Reconstruction includes mezzanines and the deck plaza roof)

In Area 5 the contractor continues with cleanup and responding to the NYCT

inspection observation lists.

At the 6th Mezzanine, the ceiling panels and lighting are complete. In the Traction Elevators 1-4, controller tests are scheduled for May 1, 2016.

Arts-N-Design artwork installation is complete on the 6th Mezzanine and is

complete in Entrance #1.

Installation of granite pavers on the 6th Mezzanine is complete with the

exception of infills.

Entrances (#1, #2, #3, and #4)

At Entrance #1, the contractor is finalizing work in the Back-Of-House

(BOH) area.

At the Entrance #2, testing has resumed.

At Entrances #3 and #4, the lighting levels are being checked.

Platforms

The full height construction wall between the active and inactive platform

has been removed for a “softer” demising barrier until full wall removal at

the time of Revenue Service.

Site

The Plaza renovation is complete.

Contract C-26007 (C4B) 72nd Street Station Cavern Mining and Lining

Substantial Completion was achieved on January 14, 2014. Submittal of contract

closeout documentation is ongoing;


The punchlist items, including correcting the deficiencies to the architectural finish

along the escalator incline at Entrance #2 are complete and the area has been turned

back over to the C4C contractor; and,

Similar corrective work will also be required on the Entrance #1 incline finish.

Contract C-26011 (C4C) 72nd Street Station – Station Finishes, MEP, Ancillary Buildings

and Entrances

Ancillary #2

Cable pulling at the street level EDR is 95% complete and the main cable pulling is

complete at the 2nd floor;

Electrical work is complete in the Ancillary #2 basement & sub-basement

FPRs;

ConEd inspection and testing was completed in the Sub-Basement and Basement

FPRs in both Ancillaries #1 & #2; and,

Installation of pipe risers from the street to the roof Cooling Towers & Dry

Coolers continues at Ancillary #2.

Entrance #2

Installation of the escalator steps is approximately 50% complete at Entrance #2 and

installation of the handrails continues.

Ancillary #1

2 Fan Motors have been delivered;

Concrete placement of the corner stair nears completion; and,

Installation of conduit risers from the street EDR to the 4th Floor Fan Control

Room continues.

Cavern Mezzanine (Public, North and South)

In the Public Mezzanine the W30 porcelain tile installation is complete with

exception of the Arts-N-Transit panels; and,

In the North & South Mezzanines, installation of equipment devices, BMS

(Building Management System) panels, etc. in the Fan/Chiller Rooms

continues.

Platform

Installation of the platform granite wall tiles at the stairs and escalators is

complete with exception of infill at the doors;

Installation of drive machines for the Platform to Mezzanine elevator

(Elevator #1) is complete; and,

Installation of conduit & lights in the platform service carriers continues.

Entrance #1

The escalator conduit installation and light fixture installation was completed and

approximately 90% of the scaffolding has been removed from the incline;

Installation of the escalators is scheduled to begin May 1, 2016; and,

On the outside at Escalator #12, components installation is ongoing.


Entrance #3 (Elevator Bank)

3 of the drive machines have been installed in the Elevator Machine Room for the

traction elevators.

Schedule

At the end of April 2016, the energization of 1 permanent power feed was

accomplished by ConEd during a weekend outage. With this permanent power,

the project can proceed to complete all equipment power and systems testing.

Contract C-26008 (C5B) 86th Street Station Cavern Mining and Lining

Substantial Completion of all contract work was achieved on December 16, 2014.

The architectural finish corrections at Entrance #2 and Entrance #1 escalator inclines

has been completed and the areas turned back over to the C5C contractor.

Contract C-26012 (C5C) 86th Street Station Finishes, MEP Systems, Ancillary Buildings &

Entrances

Cavern (Public, North & South Mezzanines) The porcelain tile on the W30 wall in the Public Mezzanine continues on the

east wall. The west wall tile installation is complete except for the art panels.

All fans (north & south mezzanines) arrived at the site.

Installation of the transition ducts and silencers for the fans are complete in

the north and south mezzanines.

Third Party Testing continued in the FPRs (Facility Power Room).

Installation of dampers continued in the north & south mezzanines.

Entrance #1

Some rigging remains in place. The long escalators truss alignment and

components installation continues.

Entrance #2

At Escalators #8, #9 & #10 the alignment is complete. Removal of rigging is

complete. Work platforms have been installed over the escalators for finishing out

the escalator incline.

At the traction elevator installation of rails is underway.

Ancillary #1 At Ancillary #1 the building fit-out is continuing, including electrical, ductwork, C6

conduit, etc; and,

At Ancillary #1 the Cooling Tower has been set in place; the Dry Cooler will be

delivered in early May 2016.

Ancillary #2 The structure erection continues above street level; and,

At Ancillary #2 the equipment for 3 rooms was delivered.

Platform Installation of platform granite pavers is complete with the exception of

infill tiles. Granite tile installation at the platform on the


escalators/stairways walls is complete with the exception of infill tiles at

doors; and,

C6 has completed the trackwork on the southbound side and the contractor resumed

Durasteel framing installation over the track.

Site

Street restoration, along 2nd Ave. continues with backfilling of ductbanks.

Schedule ConEd began their “Trip Checks” at the site.

The plan remains for permanent power energization to be accomplished first in the

South Mezzanine power rooms, with the north to follow.

Contract C-26009 (C6) Track, Power, Signals and Communication Systems

The Contractor’s current schedule indicates a Substantial Completion (SC) date of 12/12/2016.

This is 2 weeks earlier than the revised SC date of 12/31/2016 and 9 weeks earlier than the

December 2015 CPM update SC date of 2/21/2017. Near term acceleration milestones includes:

96th Street Station

Signal System buildout to allow Field Installation Acceptance Test (FIAT) to be

completed by 5/23/2016. Work includes but not limited to:

o Breakdown testing of all relays, ground detectors, transfer switches and other

components in the relay rooms and wayside

Power washing of rail

Cable pulling ongoing (data, telephone, communication)

Traction Power Substation buildout and FIATs to allow Con Edison high tension

power testing and energization.

86th Street Station

Signal System buildout to allow FIAT to be completed by 5/23/2016. Work includes

but not limited to:



o Signal System wide track circuit bulletin certification and code signal in-service

acceptance

Traction Power Substation buildout and FIATs to be completed by 5/9/2026 to allow

Con Edison high tension power testing and energization.

72nd Street Station


but not limited to:



Traction Power Substation buildout and FIATs to be completed to allow Con Edison

high tension power testing and energization.

63rd Street Station



but not limited to:

o Installation, wiring, and breakdown testing of all relays, ground detectors, transfer

switches, and signal equipment

Communication Systems buildout to allow preliminary and pre-testing FIAT to be

completed by 5/31/2016

Traction Power Substation buildout and FIATs to be completed by 6/27/2016 to allow

Con Edison high tension power testing and energization.

Acceleration schedule

Acceleration milestones have been established to have all work and testing

through Final Systems Integrated Testing completed by 9/30/2016

c. Quality Assurance and Quality Control (QA/QC)

Status:

During April 2016, the Second Avenue Subway Quality Management team continued to conduct

Quality Meetings and Quarterly Quality Oversights of the Contractor with CCM, MTACC, and

PMOC participation. The Quality Management Team participated in the job progress meetings,

monitored quality matters in the field for each construction contract, reviewed and provided

comments for Quality Work Plans, and participated in Preparatory Phase Meetings for numerous

construction processes.

Observations:

C2B: The C2B Contractor’s Quality Manager has not met the dates he has committed to

complete action items. Among the actions that keep slipping are:

A Special Inspection Matrix has not been updated;

Submittal of certifications from the Special Inspection Agency for completed work

have not been received and;

Eight (8) nonconformance reports (NCRs) have been open for more than ten months.

The Contractor’s Corporate Quality Manager is now providing assistance to the contractor’s

Quality Manager. Some improvement has been noted but the 8 NCRs that have been open for

more than 10 months is a serious issue.

C5C: There are many issues on this contract that affect Quality. These include:

Submittals that have been returned for additional information have not been returned;

Preparation of new submittals for approval has been delayed;

The Quality Staff has been reduced from four to three;

There is insufficient supervision for field activities;

Performance of external Quality Audits are behind schedule;

The electrical subcontractor’s NCRs have not been processed for over three months;

Record drawings at 50% completion has been delayed;

Work is not ready for NYCT inspection;

Check lists for many activities are not submitted on CMS; and,

Work is progressing without Preparatory Phase Meetings being held.


Contract Package C2B

Status:

Through April 30, 2016, a total of 163 NCRs have been issued. One

Hundred Thirty-Four (134) have been closed and 29 NCRs are open. In

April 2016, 13 new NCRs were written and 5 were closed. None of the

NCRs closed in April were for concrete that was out-of-specification.

Sixteen (16) of the 29 open NCRs are for concrete that was out-of-

specification.

Observation:

Bi-weekly Quality Management Meetings, as suggested by the PMOC,

are being held. Submittal of Daily Inspection Reports is still 2 weeks

behind.

Concerns and

Recommendations:

Eight (8) of the open 13 non-concrete NCRs have been open more than

ten months. Based on the PMOC’s suggestion, the contractor has

established closure dates with the assistance of their Corporate Quality

Director who is now actively involved in managing the quality effort.

All of the projected dates are in May 2016. Each month, the dates

continue to slip. The PMOC is concerned that the dates are not realistic.

The PMOC has suggested to the Corporate Quality Director that he

evaluate each open NCR and add a column to the NCR log with

comments explaining what actions are being taken to close it.

Contract Package C3

Status:


hundred eighteen (118) have been closed and 7 are still open. In April

2016, one new NCR was written and none were closed.

Observation: Submittal of Daily Inspection Reports is current.

Concerns and

Recommendations: The PMOC has no concerns.

Contract Package C4C

Status:


hundred sixty-three (163) have been closed and 64 NCRs are still open.

In April 2016, three (3) NCRs were written and none were closed.

Observation:

One hundred eighty-four (184) of the 227 NCRs are for concrete that

was out of specification. Two of the three NCRs generated in April

2016 were for concrete that was out of range for slump. Submittal of

Daily Inspection Reports is current.

Concerns and

Recommendations:

Forty-three (43) of the remaining 64 open NCRs are for concrete that

was out of specification.

Contract Package C5C

Status:

Through April 30, 2016, 181 NCRs have been issued. One Hundred

twenty-one (121) have been closed and 60 NCRs are still open. In April

2016, four new NCRs were written and 47 were closed.


Observation:

Nine (9) of the 60 NCRs that are open are for concrete that is out of

specification. The contractor prepared and submitted a concrete

statistical analysis in April 2016. It was approved by the Engineer of

Record and all 47 of the NCRs closed in April 2016 were for concrete

that was out of specification. Submittal of Daily Inspection Reports is

one week behind.

Concerns and

Recommendations:

The PMOC continues to recommend that the contractor establish a

schedule for closing the 51 non-concrete NCRs. The PMOC also

recommends that effort be devoted to resolving the issues listed in the

beginning of this section.

Contract Package C6

Status:

Through April 30, 2016, a total of 60 NCRs have been issued. Forty-

one (41) NCRs have been closed and 19 are still open. In April 2016,

no new NCRs were written and none were closed.

Observation: Fourteen of the open NCRs are for concrete that was placed beyond the

90 minute time limit. Submittal of Daily Inspection Reports is current.

Concerns and

Recommendations:

The cause for the concrete NCRs that were placed beyond the 90 minute

time limit was due to trucks that were delayed getting to the site due to

heavy traffic. It is expected that about ten of the concrete NCRs will be

closed in May 2016.

Concerns and Recommendations:

Discussed under each Contract Package.

2.0 SCHEDULE DATA

Status:

The PMOC received updated P6 schedules for the four (4) active construction contracts on May

2, 2016. These schedules are updates of those included as part of each contract’s “Schedule

Acceleration Agreement”. Each schedule has been updated through April 1, 2016. MTACC is no

longer maintaining an Integrated Project Schedule (IPS). The last IPS monthly update modeled

the status of the project through February 1, 2016. Subsequent discussions will be based on the

schedule for each individual construction contractor.

The lack of an integrated project schedule complicates the assessment of overall project

contingency. Based on information presented at the March 23, 2016 C/S Meeting, the latest date

identified by the fragnet schedules for the start of Pre-Revenue Service Activities is September

14, 2016. This date is controlled by LAN/WAN installation, testing and subsequent Level 5 Fire

Alarm System testing. MTACC has also advanced its internal estimate of when it can achieve

RSD. MTACC’s internal target to commence revenue service is now December 1, 2016. This

effectively adds 30 CD of schedule float if the published RSD of December 30, 2016 is used.


Based on the available schedule information, available schedule contingency is evaluated as

follows:

Dates

Contingency

(CD) MTACC Construction, Testing

Complete 09/01/16

NYCT Pre-Revenue Training, Testing

- 60 CD 11/01/16

MTACC RSD- (REVISED TARGET) 12/01/16 30 MTACC Contingency

ELPEP Threshold 07/03/17 214 Additional Contingency

FTA RSD 02/28/18 240

Minimum ELPEP

Contingency

484 TOTAL

Observations:

Contract schedules in the “P6” format provide more detail regarding the work required to

complete than the highly summarized “Netpoint” schedules. However, the value of the P6

schedules is also limited. Schedule float values cannot be relied upon as an indicator of schedule

“criticality”. In some cases, float values exceed project remaining duration. In other cases,

excessive use of constrained milestone date artificially increase negative float values.

C2B – 96th Street Station

Substantial general and architectural construction remains at street level, station

platform and mezzanine levels, Ancillary 2, Entrances 1, 2 and 3. The risk of

street-level work impacting the RSD is low. While some of this work may be

deferred until after RSD, a certain finish level is typically required for a station to

be deemed acceptable for passenger use;

A significant portion of FIAT (Level 2 and 3) testing is forecast to occur between

June 6, 2016 and June 17, 2016. Concentration of this type of activity may stress

available NYCT support resources;

With the exceptions of minor architectural and site restoration, all installation and

testing (through level 4) activities are forecast to complete before September 1,

2016; and,

Development of equipment test and acceptance procedures, O & M Manuals and

submittal of test results represent a very large number of activities within this

schedule.

C4C – 72nd Street Station

Availability of permanent power is forecast for April 30, 2016;

Development of test procedures, O & M Manuals and submittal of test results

represent a relatively few number of activities within this schedule. Development

of equipment test and acceptance procedures is not included;


Some finish construction activities such as painting, flooring, cleanup, elevator and

escalator trim, and punchlist activities extend beyond September 1, 2016;

Completion and turnover of fire protection systems does not occur until September

29, 2016;

Testing of elevators is not completed until November 14, 2016;

Entrance 1 escalator testing is not completed until November 14, 2016;

Track drainage system testing is not complete until October 14, 2016;

TSSM testing is not complete until October 12, 2016; and,

PMOC assumes final O & M Manuals and systems training will not constrain

NYCT Pre-Revenue Testing and the subsequent RSD. A number of these activities

do not complete until November/December 2016.

C5C – 86th Street Station

Availability of permanent power is forecast for May 2, 2016;

Delivery of water mist system equipment will not be complete until May 4, 2016;

installation of this system is forecast for completion on May 30, 2016;

Ancillary 2 structural work is forecast to complete in late May 2016;

Final inspections and punchlist work are all “planned to occur between October 10,

2016 and December 26, 2016;

Development of equipment test and acceptance procedure are not included in this

schedule;

Limited interior and exterior architectural work, site restoration and system testing

activities are forecast beyond September 1, 2016; and,

This contractor appears to have interpreted the acceleration agreement to mean that

inspection and punchlist activities may extend beyond September 1, 2016. The

nature of these activities may create punchlist work potentially interfering with

NYCT pre-revenue testing at the platform and mezzanine levels.

C6 – Systems:

Activities within this schedule contain as much as -746 WD (nearly 3 years) of

schedule float. This is based on the ongoing linkages to original contract

milestones. It can be reasonably assumed this contractor is maintaining this

schedule in anticipation of pursuing a significant post-construction equitable

adjustment to its contract;

Fire alarm testing; and,

Installation and testing - police radio system.

The PMOC review indicates several potential issues with this schedule:

This schedule appears to substantially comply with the acceleration agreement in

that the planned completion of all virtually work is on or before September 1,

2016;


Approximately 140 milestones have been added to the schedule, denoting the

completion of work by other contractors on which C6 work is dependent; and,

There are approximately 210 CD from the schedule data date of February 1, 2016,

to the construction complete milestone of September 1, 2016. The fact that nearly

25% of the activities in this schedule have negative float values which exceed this

value (negative float values extend to -735 WD) creates significant concern over

the validity of this schedule.

A lack of consistency in construction schedule development has been previously noted and

continues to limit schedule usefulness. A current example is the selective inclusion of equipment

test and acceptance procedure development and improvement. The C2B schedule includes this

work in great detail while it is almost completely absent from the C4C and C5C schedules.

Netpoint Summary Schedule:

The most recent “Netpoint” schedule provided to the PMOC had Data Dates in early April, 2016.

Based on these schedules, critical or near-critical schedule issues include the following:

Tunnel ventilation; 96th, 86th and 72nd Street Stations;

Fire Alarm – Life Safety Installation; 96th and 72nd Street Stations;

Vertical Transportation – Installation and Testing; 72nd Street Station;

FIAT (Level 3-> 4) Testing; 96th, 86th and 72nd Street Stations;

FIST (Level 5) Testing; 96th, 86th and 72nd Street Stations; and,

FIAT (Level 3-> 4) Testing (LAN/WAN); 96th, 86th, 72nd and 63rd Street

Stations.

Additional observations include:

At 96th Street, significant delays to the start of FIAT (Level 3->4) Testing are

indicated for all Fire Life Safety Systems. These schedules do not provide

sufficient information to evaluate the cause of the delay;

Permanent Power:

o At 72nd Street, the availability of permanent power had been forecast for April

15, 2016. There appears to be a discrepancy between the Netpoint and P6

schedules.

o At 86th Street, permanent power availability is indicated to be June 1, 2016, a

discrepancy between the Netpoint and P6 schedules.

The date when permanent power become available remains important as it is a

necessary predecessor to the start of almost all FIAT (Level 3->4) Testing;

At 72nd Street Station, timing of escalator installation and testing has become

increasingly compressed in the Oct. /Nov. 2016 time period. The current schedule

indicated the 48 hour operational test for escalators 6, 7 and 8 will not be

completed in time to support MTACC’s December 1, 2016 target RSD;

At 96th Street, the last Netpoint schedule received from MTACC (DD=3/21/16)

indicates a significant improvement in testing and completion of most systems.


Completion of testing of HVAC systems control the completion of this schedule.

The schedule seems to indicate delays to the development of test procedures for

the UPS System and Ancillary 1. Schedule symbols in these fragnets are not

included in the Legend; however they most closely represent the symbol for

“delay”; and,

Remaining architectural construction and sitework is not included in any of the

schedules for the three new stations.

Milestone Summary: As a part of the “Schedule Acceleration Agreements”, MTACC

established revised milestones with each contractor for the work involved. These milestones are

summarized and updated in the following table:

72nd Street

MS Description Accel.

Agreement

Update

(04/01/16)

15 Contract C26009 Access. Turn over communication room 5012 and

lube oil room 2006. 03/15/16 03/15/16A

16 Summit all preliminary O&M manuals, and all procedures for FIAT,

SIST and FIST tests. 04/30/16 05/01/16

17 Complete all work required for Con Edison to energize the Facility

Power substations including. 04/30/16 04/30/16

18 Complete all work and testing required to complete permanent

power distribution. 05/31/16 06/01/16

19

Complete all installations, controls, pretests, finishes and

environmental controls for the TSSM rooms at Ancillary 2 to start

FIAT (Levels 3/4) testing of the TSSM system at Ancillary 2.

05/31/16 05/30/16

20

Complete all installations, controls, pretests, finishes and

environmental controls for the TSSM rooms at Ancillary 1 to start

FIAT (Levels 3/4) testing.

06/15/16 06/16/16

21 Complete all installations and pretests for the HVAC rooms to start

FIAT (Levels 3/4) testing (Ancillary 2) 05/31/16 05/31/16

22 Complete all installations and pretests for the HVAC rooms to start

FIAT (Levels 3/4) testing (Ancillary 1) 06/15/16 06/15/16

23 Complete all work and pretests required to start FIAT (Levels 3/4)

on the Fire and Life Safety systems. 07/01/16 07/01/16

24 Complete all work and pretests required to start FIAT (Levels 3/4)

on the Water Mist Fire and Life Safety systems. 07/01/16 07/01/16

25

Complete all work and testing through FSIT (Levels 5a/b), including

2 weeks dedicated to performing FSIT over the WAN in

coordination with the C26009 Contractor (Level 5b).

09/30/16 09/30/16

26 Complete all work and testing through FSIT (Levels 5a/b) for

Escalators at Entrance 1 and Elevators at Entrance 3. 11/01/16 11/01/16


86th Street


Agreement

Update

(04/01/16)

15 Complete all work required for Con Edison to complete energization

to provide permanent Facility Power. 04/30/16 05/02/16

16 Complete Installation and Preparation for Level 3/4 Testing of

HVAC Systems 05/31/16 05/31/16

17 Complete Installation and Preparation for Level 3/4 Testing of

TSSM 05/25/16 05/31/16

18 Complete Installation and Preparation for Level 3/4 Testing of Fire

And Life Safety Systems 05/26/16 06/02/16

19 Complete all installation and testing – elevators and escalators 09/01/16 08/30/16

20

Complete all work and testing through FSIT, including 2 weeks

dedicated to performing FSIT via WAN in coordination with the

C26009 (Level 5b).

08/31/16 09/01/16

96th Street


Agreement

Update

(04/01/16)

12 Complete all Work required for Con Edison to energize the South

Facility Power Substation at 96th Street. 02/29/16 02/29/16A

13

Provide permanent power to the communication rooms for

Milestone 6, the signal rooms for Milestone 7, the traction power

rooms for Milestone 8, the station service center for Milestone 9 and

the other rooms for Milestone 10.

03/31/16 04/13/16

14 Complete Preparations and Installation of Electrical and Mechanical

Systems to Start FIAT (Level 3,4) Testing 05/31/16 06/13/16

15 Complete all work required to commence FIAT (Level 3,4) on the

TSSM system 05/31/16 05/26/16

16 Complete all work required to commence all FIAT (Level 3,4) on

the Fire and Life Safety systems 05/31/16 05/31/16

17 Complete Level 5a Testing for HVAC, and Fire and Life Safety 07/31/16 07/28/16

18 Complete all work required to commence FIAT on all escalators and

elevators 07/31/16 07/28/16

19 Complete Level 5b Testing for All Systems; Complete ALL Work 08/31/16 08/30/16

Systems


Agreement

Update

(04/01/16)

6 72nd Street: Complete all installation and testing required for ConEd

to inspect and start trip-checks. 05/02/16 04/25/16

7 96th Street: Complete all installation and testing required for ConEd


8 86th Street: Complete all installation and testing required for ConEd


9 Complete All Traction Power Installation and FIAT (Level 3/4)

testing 06/27/16 06/27/16


Systems


Agreement

Update

(04/01/16)

10

Complete installation of Trackwork and the Third Rail for Tracks S1

& S2 including submittal of complete scans demonstrating a

contractually compliant installation.

05/30/16 05/27/16

11 Complete all Field Installation Acceptance Tests (FIAT) of the

Signal System at 72nd Street. 05/23/16 04/23/16


Signal System at 96th Street. 05/23/16 05/22/16


Signal System at 86th Street. 07/18/16 07/17/16

14

Complete all Field Installation Acceptance Tests (FIAT) of the

Signal System at 63rd Street and existing tie-in rooms at various

locations.

05/30/16 05/25/16

15 Complete all remaining signal system work and testing required 05/23/16 05/07/16

16 63rd Comms. Systems: Complete all work and pre-testing required

to perform Field Installation Acceptance Tests 05/31/16 05/31/16

17 72nd Comms. Systems: Complete all work and pre-testing required


18 86th Comms. Systems: Complete all work and pre-testing required


19 96th Comms. Systems: Complete all work and pre-testing required


20

The Contractor shall complete all work and testing through Final

Systems Integrated Testing of all systems over the Local Area

Network (LAN) and overall Wide Area Network (WAN), such that

the LAN/ WAN is available for Final Systems Integrated Testing by

the Station Contractors.

06/06/16 06/06/16

21 Complete all other work required to start Pre-Revenue Service

Training 09/30/16 09/30/16

Activity Progress Monitoring:

Progress evaluation is a comparison of actual achievement versus planned achievement through a

given time period. Using the acceleration schedules incorporated with each of the acceleration

agreements, the PMOC has tabulated the number of activities forecast to be completed per

month. Updated schedule provide actual activities achieved per month and revised forecasts for

incomplete activities. Activity information is expressed in % complete to account for incidental

activity additions and deletions.


Tabular and graphic summaries of this information follow:

Date

Planned

%

Complete

Actual %

Complete

Forecast %

Complete

Jan-16 5.7% 0.6%

Feb-16 22.7% 1.3%

Mar-16 42.2% 7.3% 7.3%

Apr-16 59.9%

31.7%

May-16 72.9%

54.0%

Jun-16 82.2%

70.1%

Jul-16 89.0%

80.8%

Aug-16 93.6%

91.2%

Sep-16 96.2%

96.2%

Oct-16 97.9%

97.8%

Nov-16 99.0%

98.8%

Dec-16 99.8%

99.9%

Jan-17 100.0%

100.0%

Feb-17 100.0%

100.0%


This very simple analysis indicates that, according to the updated contractor schedules,

significantly fewer activities have been achieved by the four “accelerated” construction contracts

than planned.

“Earned Value” Analysis:

In its periodic reports to the FTA, MTACC details the Budgeted Cost of Work Scheduled

(BCWS) versus the Budgeted Cost of Work Performed (BCWP) for each active construction

contract. At a summary level, the resulting “S-curves” compare planned versus actual

performance and can provide insight into performance trends and schedule forecasts. For each

active construction contract, the following table compares the planned vs. actual monthly level of

achievement in terms of value earned by completed construction work. This “earned value” can

be used to estimate the variance in planned vs actual schedule performance. January 2016 is the

latest month for which this information is available.

Value Earned through - March-16

Contract $

(x100K)

Plan $

Earned

Actual $

Earned

Plan

Month

for

Actual $

Earned

Months

Ahead

(+) or

Behind

(-)

Const.

Comp

Date

Est. Const.

Complete

Date

C2B $324 $324 $286 Apr-15 -8.1 9/1/16 5/3/17

C3 $176 $176 $170 Sep-13 -27.4 9/1/16 03/1/17

C4C $258 $255 $211 Mar-15 -9.7 9/1/16 6/18/17

C5C $208 $202 $170 Aug-15 -4.1 9/1/16 1/1/17

C6 $261 $253 $208 Jun-15 -6.2 9/1/16 3/5/17

TOTAL $1,227 $1,210 $1,044 Apr-15 -8.2 9/1/16 5/5/17

Cost Variance = Plan $ Earned – Actual $ Earned

= $1,210M - $1,044M = $166M

This summary level analysis suggests the following:

1. Had the work progressed according to baseline “plans”, an additional $166M worth of

original contract work would have been performed on or before March 31, 2016.

2. MTACC’s acceleration plan requires that $166M of baseline construction be completed over

the next 4 months. This does not include change order work or the value of the acceleration

agreements.

3. If the current rate of progress can be maintained, the C4C, C5C and C6 contracts appear to be

progressing at a rate that can achieve goal of the acceleration effort.

4. Based on current schedule assumptions, NYCT will require a minimum 2 months for pre-

revenue testing after all construction is complete. This results in a forecast RSD of July 5,

2017, absent significant schedule improvement.

ELPEP/SMP Compliance: MTACC is no longer using the IPS “master schedule” approach to

manage time on the project. The “Netpoint fragnet” system being used provides individual

summarized schedule fragnets for select work on four remaining construction contracts. This


approach is not contained within the SAS Schedule Management Plan. It is the opinion of the

PMOC that MTACC is not in compliance with its schedule management plan.

Concerns and Recommendations:

1. Schedule data reviewed by the PMOC is somewhat inconclusive. Based on data provided

by MTACC:

a. Acceleration milestone forecast dates are being maintained.

b. Far fewer activities than forecast by the “acceleration schedules” are actually being

completed.

c. The rate at which contractors are realizing base contract revenue (Burn Rate) has

achieved a rate sufficient to complete the respective contracts on or around

September 1, 2016 for the first time.

2. These observations suggest contractors may be concentrating on “accelerated” work

associated with the milestones and neglecting other contract work. This scenario has been

previously observed during earlier periods of schedule acceleration.

3. MTACC has focused its schedule acceleration efforts on operating systems, generally

assuming there is always time to catch up on architectural and finish work. This approach

should be reviewed periodically to be sure certain work has not been deferred so long that

it cannot be completed without impact.

4. The total price due for each agreement is apportioned among new schedule milestones.

a. Contractors will complete the work for each milestone within 30 days of the date

established in order to receive the milestone payment.

b. Contractors have a second chance to earn the milestone payment if the contactor is

able to "catch-up" in time to meet the date required for pre-revenue training and

testing.

c. If a contractor misses a milestone date (plus 30 days) and misses the pre-revenue

service testing and training date (plus 30 days), the contractor will not be entitled

to the milestone payment.

d. The MTA may decide to pay a contractor for an otherwise missed milestone if

Revenue Service commences in or before December 2016.

PMOC is concerned that payment terms are so favorable to the contractors that

significant work may be deferred by a significant time, creating unforeseen impacts to

system testing and the RSD.

5. Review of contractor “acceleration schedules” indicates varying degrees of schedule

planning in the development of equipment and system testing procedures and acceptance

criteria.

C2B – development of test procedures incorporated in schedule in detail.

C4C – development of test procedures not included in schedule.

C5C - development of test procedures not included in schedule.

C6 - development of test procedures not included in schedule.


The presence of a plan for this work provides some level of confidence the work will be

completed in a timely manner, particularly when actual month-to-month progress appears

limited.


3.0 COST DATA

Based upon financial expenditures reported by the MTACC through April 30, 2016, SAS Phase

1 is approximately 87.4% complete. The completion status of the individual construction

contracts through April 30, 2016, also based upon reported expenditures through that date, is as

follows:

C26002 (Tunnel Boring) – 100.0%;

C26005 (96th Street Station) – 100.0%;


C26013 (86th Street Station) – 100%;



C26006 (63rd Street Station) – 96.9%;

C26007 (72nd Street Station) – 99.9%;

C26011 (72nd Street Station) – 83.5% ; and,

C26009 (Systems) – 79.9%.

Aggregate Construction percentage complete:

100% of all construction has been bid;

100% of all construction is under contract;

93.1% of base contract construction (excluding AWOs) is complete; and,

93.6% of all construction is complete.

Based upon cost data received from the MTACC for the period through April 30, 2016:

Value of construction reported in place this period = $37,073,611;

Estimated value of construction remaining = $186,028,339 (base contract only);

Target construction completion = September 1, 2016;

Number of months remaining = 4; and,

Avg. required construction expenditure to achieve target date = $45,608,948/MO.

Soft Cost expenditures (not including real estate, OCIP, etc.) reported this period by the MTACC

totaled $2.76M; expenditures were spread through all of the project management and technical

support categories. This lower-than-usual expenditure is partially due to the lack of any expense

recorded against Construction Management. It also appears that additional MTA staff costs

attributable to support of the schedule acceleration have yet to be charged to the project.

At current expenditure levels, the available budget should be sufficient through 2016. Significant

expenditure beyond 2016 however, may require the transfer of additional funds from

contingency. Any significant construction delays beyond December 2016 may also require

additional contingency transfer.


Cost Growth: The value of AWOs reported by the MTACC/NYCT in April 2016 is summarized

as follows:

Executed AWOs AWO Exposure

Apr-16 $261,292,038 $351,402,566

Mar-16 $242,149,840 $342,552,667

Δ $19,142,198 $8,849,899

Δ 7.91% 2.58%

The changes in AWO Exposure for each construction contract are summarized as follows:

Const.

Pkg.

AWO Exposure

Apr-16 Mar-16 Period ∆ Changes this Period

Complete

Packages $47,612,118 $47,612,118 $0

Final values for Packages C1 and C5A as

reported by MTACC.

C2A $47,615,409 $47,615,409 $0 No change reported this period.

C2B $59,195,482 $59,240,668 -$45,187

Net increase is based on revised estimates for

AWO #s 121, 151, 178, 207, 215, 222, 224,

225, 228 and initial estimates for AWO #s

187, 203, 227, and 231.

C3 $40,533,864 $39,383,057 $1,150,807


AWO #s 190, 223, 260, 267, 271, 272, 275,

276, 277, 278, 279, 280, 282 through 291, and

initial estimates for AWO # 292 through 302.

C4B $1,325,639 $1,325,639 $0 No change reported this period.

C4C $66,906,970 $60,089,406 $6,817,564


AWO # 25, 80, 115, 118, 159, 160, 164, 182,

197, 210, 221 through 231 and initial estimates

for AWO #s 23, 50, 199, 232, 233, 234, 237,

238, 239, and 240.


C5C $30,765,404 $29,890,264 $875,140


AWO #s 6, 26, 33, 46, 79, 88, 90, 95, 96, 127,

133, and 150 and initial estimates for AWO #s

23, 48, 106, 124, 143, 161, 162, 167, and 168.

C6 $31,167,559 $31,115,984 $51,575

Net increase is based on revised estimates

for AWO #s 3, 46, 107, 131, 134, 135, 146,

171, 185, and 189 and initial estimates for

AWO #s 162, 167, and 197.

$351,402,566 $342,552,667 $8,849,899


The changes in Executed AWO Value are summarized as follows:

Const.

Pkg.

Executed AWOs

Apr-16 Mar-16 Period ∆ Changes this Period

Complete

Packages $47,612,118 $47,612,118 $0

Final values for Packages C1 and C5A as

reported by MTACC.

C2A $47,615,409 $47,615,409 $0 No change reported this period.

C2B $49,550,183 $35,122,183 $14,428,000 Increase is based on execution of AWO #s

89, 145, 206, 207, 208, 214, 223, and 230.

C3 $28,078,288 $27,992,088 $86,200 Increase is based on execution of AWO # 42,

92, 288.


C4C $32,741,399 $30,089,999 $2,651,400

Increase is based on execution of AWO #s

94, 160, 172, 173, 174, 194, 195, 207, 214,

216, 217, 220, 225, 229, and 230.


C5C $7,714,904 $6,113,306 $1,601,598

Increase is based on execution of

AWO #s 21, 23, 25, 73, 85, 86, 105, 138,

144, and 150.

C6 $25,067,285 $24,692,285 $375,000 Increase is based on execution of

AWO #s 107, 131, 134, 171, and 185.

$261,292,038 $242,149,840 $19,142,198


As of April 30, 2016, the status of Additional Work Orders (AWOs) for each construction

contract on Phase 1 of the Second Avenue Subway Project is summarized as follows:

Contract /

(Package)

%

Complete Award

Exposure Executed

$ % of

Award $

% of

Award

C26002 (1) 100.00% $337,025,000 $41,086,647 12.19% $41,086,647 12.19%

C26005 (2A) 100.00% $325,000,000 $47,615,409 14.65% $47,615,409 14.65%

C26010 (2B) 85.04% $324,600,000 $59,195,482 18.24% $49,550,183 15.26%

C26006 (3) 94.71% $176,450,000 $40,533,864 22.97% $28,078,288 15.91%

C26007 (4B) 99.93% $447,180,260 $1,325,639 0.30% $1,325,639 0.30%

C26011 (4C) 73.36% $258,353,000 $66,906,970 25.90% $32,741,399 12.67%

C26013 (5A) 100.00% $34,070,039 $6,525,471 19.15% $6,525,471 19.15%

C26008 (5B) 99.63% $301,860,000 $26,280,122 8.71% $21,586,813 7.15%

C26012 (5C) 64.84% $208,376,000 $30,765,404 14.76% $7,714,904 3.70%

C26009(6) 69.51% $261,900,000 $31,167,559 11.90% $25,067,285 9.57%

TOTAL TO DATE $2,674,814,299 $351,402,566 13.14% $261,292,038 9.77%

To date, $2,488,785,960 (93.1%) worth of all base contract construction work has been

completed. As a percentage of work completed, the AWO exposure for these contracts is 14.1%

and the executed AWO percentage is 10.5%.

The PMOC notes that total AWOs currently exceed the original AWO budget. The PMOC also

notes that exposure values are not included in a significant number of logged AWOs. Based on

current AWO trends, the final AWO value is estimated at approximately $350 million. MTACC

maintains an AWO forecast at completion that includes input from its Risk Registers. The

MTACC AWO EAC Forecast through March, 2016, is $359,227,269. This value is somewhat

greater than the PMOC’s AWO forecast and will be used as part of the overall contingency/EAC

analysis.


Cost Contingency: Based upon the MTACC Current Working Budget, expenditures as of April

30, 2016, reported by the MTACC and the current AWO Exposure analyses, the PMOC has

developed the following contingency analysis:

Contingency Analysis

Current @ Completion

Phase 1 Budget $4,451,000,000 $4,451,000,000

Construction Awards $2,674,814,299 $2,674,814,299

Soft Cost Expended $1,176,630,126 $1,176,630,126

Soft Cost Forecast to Complete $200,024,639 $200,024,639

Add'l Soft Cost - Schedule Acceleration

$25,000,000

AWO Exposure $299,046,313 $359,227,269

Total Contingency $100,484,623 $15,303,667

Reserved Contingency $100,484,623 $15,303,667

Notes:

(1) AWO Exposure @ Completion incorporates MTACC’s latest “risk-informed” forecast

through March 2016

(2) Total Contingency = Reserved Contingency = total budget balance after forecast

expenditures;

(3) Minimum Available Contingency required by ELPEP is approximately $45,000,000 (100%

Construction Bid, 85% Construction Complete).

Conclusions based upon this analysis include:

(1) At the April 21, 2016 Quarterly Meeting with FTA, MTACC stated that “soft costs” to

support the schedule acceleration effort could be as high as $25M. This preliminary

estimate may be conservative, however given the limited contingency remaining, PMOC

recommends MTACC incorporate that additional $708M of local funds committed

through the amended FFGA into the project cost management system to cover potential

additional costs in excess of available contingency.

(2) Available contingency currently conforms to ELPEP limits.

ELPEP/CMP Compliance: The SAS Project Team maintains an EAC for all construction

costs, which is updated monthly. Revision #10 of the Project Cost Estimate, which includes a

complete forecast of remaining soft costs has been prepared, incorporated and updated as the

project CWB. It is the opinion of the PMOC that SAS Phase 1 is in substantial compliance with

the metrics, deliverables, and overall goals enumerated for Cost Management in the Enterprise

Level Project Execution Plan (ELPEP), dated January 15, 2010 (Section IV. b, page 8), and as

further described by the Cost Management Plan (CMP).


4.0 RISK MANAGEMENT

Status

The major risk challenging the SAS Project Team at this time is schedule; senior MTA

management has advised that the current goal for construction completion and the start of

Revenue Service is December 1, 2016. Secondary risk involves the possibility that additional

schedule acceleration (or delay mitigation) costs could threaten the completion of the project

within MTACC’s Current Working Budget of $4.451B.

At this stage of the project, these risks are well understood by senior SAS managers and their

mitigation is the focus of almost all project management activity. As such, regular monthly risk

management meetings and reports are somewhat redundant and are not currently scheduled.

Observation and Analysis:

The goal of MTACC’s “schedule acceleration initiative” is to complete all third-party

construction, testing, and acceptance activities by September 1, 2016. This will create additional

time for NYCT operational testing and final “debugging” necessary for Revenue Service to start

no later than December 30, 2016. The acceleration of the construction schedule can be

considered a mitigation strategy directed at recovering time lost through previous delays and

mitigating delays forecast by the project schedule and other project management tools.

Risks can be classified as either management and organizational risk or technical and

coordination risk. Major risks within each of these categories are summarized as follows:

Management and Organizational Risks

Risk Status

1.

MTACC’s ability to implement its schedule

acceleration program through compression

of construction schedules.

MTACC appears to have successfully

avoided this risk.

2.

Design and scope changes requested by

NYCT during the late stages of

construction.

During March 2016, 48 new AWOs were

executed. During April 2016, 43 new AWOs

were executed. Preliminary review of these

AWOs suggests they conform to the

“operations and life safety” criteria noted by

MTACC.

3.

Availability of NYCT staff to support

testing, commissioning and final acceptance

of work performed by SAS contractors

Additional NYCT staff to support testing and

acceptance of the work have been and will be

made available to support project needs.

4.

Availability of NYCT staff to conduct code

compliance and final inspection of

constructed facilities.

A consultant has been procured and will

provide supplemental staff to support NYCT

code compliance inspection activities.

MTACC has noted this effort involves over

1400 individual rooms. At the March and

April 2016 Cost & Schedule meetings,

PMOC has requested documentation of the

status of this effort. No information has been

provided by MTACC to date.

5. MTACC’s system testing and approval The projects current method of referencing


Management and Organizational Risks

Risk Status process has deviated from its Facilities

System Test Program as a means of

supporting the accelerated construction and

testing schedule.

tests as specific “Levels” is not defined in the

Facilities Systems Test Program (FSTP)

(Volume 1 –Management Plan). The FSTP

also states that there will be a Systems

Acceptance Phase (SAP) which will occur

after substantial completion (completion of

FAT, FIAT, SIST and FSIT). During this

phase, the systems and subsystems will be

operated to demonstrate that all interfaces

and systems are functioning as designed and

intended. After successful completion of this

phase, acceptance certificates will be issued

by NYCT. Schedules published by MTACC

do not reflect the testing process as

documented in the FSTP.

6.

MTACC’s ability to manage the change

order process in a timely manner to avoid

contractor delay.

PMOC has observed a general increase in the

number of AWOs executed over the past

several months. Additional resources have

apparently had an impact on volume of

AWOs processed.

Technical and Coordination Risks

Risk Status

1.

Critical communication systems: fire alarm

system and police radio installation, testing,

commissioning and acceptance.

Schedules made available by MTACC

currently indicate these work elements will

be completed in time to support the

scheduled RSD. 2. Permanent facility power – all stations

3. Traction Power – all stations

4. Installation, testing, commissioning and

acceptance of elevators and escalators.

5. Watermist system.

In addition to these risks, the PMOC considers the overall capability and readiness of the SAS

Project Team (MTACC and its consultants and contractors) to implement an aggressive schedule

acceleration initiative to be a significant risk.

As the number of field installation activities decreases, the next major “phase” of work involves

system testing and commissioning. The following table summarizes the SAS Project Team’s

progress during January and February 2016 in developing test procedures and acceptance criteria

necessary for the performance of the actual equipment testing and acceptance.


Level 3/4 (FIAT) Level 5 (FIST) Level 6 (FSIT/SIT)

Mar-16 Apr-16 Δ Mar-16 Apr-16 Δ Mar-16 Apr-16 Δ

63rd Street

Required 65 65 0 30 30 0 9 9 0

Submitted 65 65 0 30 30 0 9 6 -3

Approved 60 65 5 17 25 8 5 6 1

% Complete 100% 83% 67%

72nd Street

Required 60 55 -5 31 26 -5 13 13 0

Submitted 39 55 16 24 26 2 4 7 3

Approved 15 29 14 2 2 0 2 1 -1

% Complete 53% 8% 8%

86th Street

Required 60 62 2 14 14 0 9 9 0

Submitted 39 62 23 0 2 2 0 0 0

Approved 20 42 22 0 0 0 0 0 0


96th Street

Required 59 61 2 13 13 0 8 8 0

Submitted 59 59 0 0 0 0 0 0 0

Approved 41 44 3 0 0 0 0 0 0


This tabulation raises the following concerns:

With the exception of 63rd Street, the level of completion of procedure

development for each level is reasonably consistent across the contracts.

Progress over the period represented by this table was limited.

Progress in the development of testing and acceptance criteria and procedures has

been and continues to be minimal at all three of the new SAS stations.

Completion and approval of all test procedures is not a criterion restraining the

start of testing at any level. However a large number of incomplete or unapproved

test procedures increases the risk of delay significantly.

Conclusions

Significant risks remain for both the successful execution of MTACC’s accelerated construction

schedule as well as overall achievement of Revenue Service on December 30, 2016. Recent

improvements in the rate of construction progress must be maintained throughout the next four

months. Significant improvements in preparation for systems testing and acceptance must be

achieved over the next several months in order for these efforts to be successful.

MTACC has effectively managed numerous cost/schedule risks over the construction phase of

SAS. In many instances, MTACC has chosen to proactively manage the project schedule

through directed acceleration at costs equal or less than costs that would be incurred by passive

acceptance of commensurate delay costs. In these instances, the risk management process has

been instrumental in identifying potential cost/schedule risks to the project and developing

mitigation strategies. The PMOC anticipates use of this process will be an important component

of MTACC’s overall schedule acceleration initiative.


5.0 ELPEP

The most recent ELPEP Quarterly Review Meeting was held on March 3, 2016. The next

ELPEP Quarterly Review Meeting with MTACC, FTA-RII, SAS and the ESA project, and the

PMOC is scheduled for June 16, 2016. With respect to SAS, the current status of each of the

main ELPEP components is summarized as follows:

Technical Capacity and Capability (TCC): MTACC has resolved all remaining

FTA/PMOC comments and has issued the final revised PMP. MTACC is not

planning any further updates to the SAS PMP;

Schedule Management Plan (SMP): MTACC’s position is that the SAS

management processes remain ELPEP compliant. The PMOC does not concur

with this assessment. PMOC notes the ELPEP Conformance/Compliance checklist

indicates the IPS is updated on a monthly basis. As noted at the March and April,

2016 Cost & Schedule Meetings, the SAS Project Team is no longer maintaining

the IPS. Refer to Section 2.0 of this report for further discussion.

Cost Management Plan (CMP): Comments on the ESA/SAS Cost Management

Plan (CMP) were received on June 2, 2015. MTACC and the PMOC have held

meetings to resolve remaining issues. MTACC’s position is that the SAS

management processes remain ELPEP compliant;

Risk Mitigation Capacity Plan (RMCP) and Risk Management Plan (RMP):

MTACC’s position is that the SAS management processes remain ELPEP

compliant; and,

The SAS Project Team has implemented the principles and requirements embodied in the

ELPEP. The procedural changes triggered by the ELPEP have become an integral part of

the management of the project and give the FTA/PMOC greater insight into the risk, cost,

and schedule elements of the project.


6.0 SAFETY AND SECURITY

Each construction contractor continued implementation of the Safety Requirements as specified

in Section 01 11 50 of the General Requirements.

As of March 31, 2015, a total of 12,758,777 construction hours have been logged on the project

with 100 lost time and 179 recordable incidents documented. The total hours and incidents

equates to a Lost Time Rate (LTR) of 1.57 and a Recordable Rate (REC) of 4.37. The LTR is

below and the REC is above the US Bureau of Labor Statistics (BLS) national rates (Heavy &

Civil construction) of 1.8 and 3.2 respectively. Although the REC is above the BLS national

rate, it continues to show a downward trend.

Safety and Security Certification: Safety and Security Certification Requirements are specified

in Section 01 77 12 of the General Requirements for each station and system contract. The

certifiable elements of the SAS project have been identified and the subsequent breakdown of the

certifiable elements into a list of certifiable items (CIL) has been completed. Technical Working

Group (TWG) meetings are ongoing with each station contractor and the system contractor to

review the test status of the certifiable items. Documentation supporting verification (Body of

Evidences) of a certifiable item is being accumulated and entered into the database. Status

meetings are held quarterly with the FTA and the PMOC in order to provide updates. Status

meetings are held monthly with the PMOC in attendance and the FTA is briefed quarterly.


7.0 ISSUES AND RECOMMENDATIONS

Schedule Acceleration Initiative: MTACC’s schedule acceleration initiative results in the

establishment of September 1, 2016, as a new intermediate milestone at which time most

construction installation and testing activities are to be completed and NYCT Pre-Revenue

Testing is scheduled to commence.

The analysis of schedule data presented by MTACC provides a mixed view of

project progress. Milestone dates are apparently being met, yet overall

performance indicators suggest schedules are not being achieved.

In managing this accelerated schedule, MTACC has chosen the traditional

approach of focusing on the installation and testing of the mechanical and

electrical systems; assuming that any remaining architectural construction can be

completed at the end by applying as much labor as may be required.

Data evaluated combined with general observation of the work sites suggests the

mechanical, electrical and systems work may be receiving priority attention at the

expense of the other, currently less critical, architectural and general construction.

PMOC recommends MTACC periodically review the progress of remaining

architectural construction as well as punchlist work to verify that sufficient

progress is being made to provide satisfactory conditions in passenger spaces to

allow opening or about the RSD.

Certification for Revenue Service: MTACC has revised significant elements of its Facilities

Systems Test Program (FSTP) to support the goals of the accelerated schedule. Upon completion

of all testing, the procedures followed, approvals received and documentation assembled is likely

to be significantly different that that stipulated by the current plan. In that scenario, the PMOC

questions what the responsible individuals or the MTA as an organization will reference as a

baseline or standard against which it is “certifying” SAS, Phase 1 as being safe for revenue

service.

Budget/Cost Management: Current forecasts indicate approximately $15M of contingency

available at the end of SAS Phase 1 construction. This forecast may underestimate certain

remaining construction and post-construction risks.

In the amended FFGA (ref. page 2) MTACC Grantee agreed to contribute additional state and

local funds in the amount of $708,000,000 to ensure sufficient funds to complete the project.

The PMOC recommends that some or all of this local obligation be made available and

incorporated into the project cost management system to ensure subsequent decisions can be

made without constraint of available funding.

April 2016 Monthly Report A-1 MTACC-SAS

APPENDIX A – ACRONYMS

ARRA American Recovery and Reinvestment Act

AWO Additional Work Orders

BLS Bureau of Labor Statistics

CBH Circuit Breaker House

CCM Consultant Construction Manager

CD Calendar Days

CIL Certifiable Items List

CMP Cost Management Plan

CSSR Contact Status Summary Report

CPRB Capital Program Review Board

CWB Current Working Budget

CY Cubic Yards

DCB Detailed Cost Breakdown

EAC Estimate at Completion

ELPEP Enterprise Level Project Execution Plan

FIAT Field Installation Acceptance Test

FFGA Full Funding Grant Agreement

FSIT Final Systems Integrated Testing

FSTP Facilities System Integrated Testing

FTA Federal Transit Administration

GO General Outage

IPS Integrated Project Schedule

LAN Local Area Network

LTR Lost Time Rate

MO Month

MPT Maintenance and Protection of Traffic

MTA Metropolitan Transportation Authority

MTACC Metropolitan Transportation Authority – Capital Construction

N/A Not Applicable

NYCT New York City Transit

NYSPTSB New York State Public Transportation Safety Board

April 2016 Monthly Report A-2 MTACC-SAS

OSS NYCT Office of System Safety

PEP Project Execution Plan

PMOC Project Management Oversight Contractor (Urban Engineers)

PMP Project Management Plan

PQM Project Quality Manual

QA Quality Assurance

RAMP Real Estate Acquisition Management Plan

REC Recordable Rate

RMCP Risk Mitigation Capacity Plan

RMP Risk Management Plan

ROD Revenue Operations Date

ROW Right of Way

RSD Revenue Service Date

SAS Second Avenue Subway

SCC Standard Cost Category

SIST Simulated Integrated System Testing

SMP Schedule Management Plan

SSCC Safety and Security Certification Committee

SSOA State Safety Oversight Agency

SSPP System Safety Program Plan

TBD To Be Determined

TCC Technical Capacity and Capability

TPSS Traction Power Substation

TWG Technical Working Group

WAN Wide Area Network (WAN)

WBS Work Breakdown Structure

WD Work Days

April 2016 Monthly Report B-1 MTACC-SAS

APPENDIX B – TABLES

Table 1 - Summary of Schedule Dates

FFGA

(March 2015)

Forecast Completion

Grantee PMOC

Begin Construction January 1, 2007 March 20, 2007A March 20, 2007A

Construction Complete August, 2016 September 1, 2016 October 2017

Revenue Service February 28, 2018 December 30, 2016 February 2018

A = Actual

Table 2 - Project Budget/Cost

FFGA FFGA

Amend

MTA Current

Working Budget

(CWB)

Expenditures as of

April 30, 2016

$ Millions % of

Total

Obligated

($ Millions) 3/17/2015 $ Millions

% of

Total $ Millions

% of

Total

Grand Total Cost 4,866.614 100 4,572.942 5,574.614 5,267.614 100 3,889.065 73.83

Financing Cost 816.614 16.78 816.614 816.614 15.50

Total Project Cost 4,050.000 83.22 4,572.942 4,758.000 4,451.00 84.50 3,889.065 73.83

Total Federal 1,350.693 27.75 1,063.942 1,373.893* 1,350.693 24.60 1,180.877 22.42

Total FTA share 1,300.000 96.25 990.049 1,3000.000 1,300.000 23.68 1,180.877 22.42

5309 New Starts

share 1,300.000 100 990.049 1,3000.000 1,300.000 23.68 1,106.984 21.02

Total FHWA share 50.693 3.75 73.893 73.893 50.693 0.96 73.893 1.40

CMAQ 48.233 95.15 71.433 71.433 48.233 0.88 71.433 1.35

Special

Highway

Appropriation 2.460 4.85 2.460 2.460 2.460 0.04 2.460 0.05

Total Local share 2,699.307 55.47 3,509.000** 3,384.107 3,509.000 ** 63.92 2,708.188 51.41

State share 450.000 16.67 100.000 450.000 8.20

Agency share 2,249.307 83.33 1,145.782 3,059.000 55.72

City share 0 0 0 0

* Obligated and expended amounts obtained from the Transportation Electronic Award Management (TEAM) system and

MTACC’s Grant Management Department.

** Current MTA Board approved budget.


Table 3 - Estimate at Completion

Category Current Working

Budget

EAC Forecast

Total Construction $2,674,814,299 $3,034,041,568.00

Engineering Services Subtotal $622,862,000 $681,088,115.00

Third Party Expenses $554,086,273 $562,086,000.00

TA Expenses $131,160,085 $158,480,650.00

Contingency $468,077,343

Total $4,451,000,000 $4,435,696,333

Table 4 - Allocation of Current Working Budget to Standard Cost Categories

Std. Cost

Category

(SCC)

Description

FFGA FFGA

Amended

MTA’s Current

Working Budget

(January 2008) (March, 2015) (December, 2015)

10 Guideway & Track Elements $612,404,000 $195,346,781 $622,478,000

20 Stations, Stops, Terminals, Intermodal $1,092,836,000 $1,666,605,679 $1,277,642,000

30 Support Facilities $0 $0 $0

40 Site Work & Special Conditions $276,229,000 $793,118,232 $524,561,000

50 Systems $322,707,000 $250,379,966 $250,134,000

60 ROW, Land, Existing Improvements $240,960,000 $281,500,000 $281,500,000

70 Vehicles $152,999,000 $0 $0

80 Professional Services $796,311,000 $1,026,608,168 $1,185,742,929

90 Unallocated Contingency $555,554,000 $544,441,174 $308,942,010

Subtotal $4,050,000,000 $4,758,000,000 $4,451,000,000

Financing Cost $816,614,000 $816,614,000 $816,614,000

Total Project $4,866,614,000 $5,574,614,000 $5,267,614,000


Table 5 - Core Accountability Items

Project Status: Original at FFGA Current* ELPEP**

Cost Cost Estimate $4,050 million $4,451 million $4,980 million

Contingency

Unallocated

Contingency $555.554 million $100 million $45 million

Total Contingency

(Allocated plus

Unallocated)

$555.554 million $100 million

(April 2016) $45 million

Schedule Revenue Service Date June 30, 2014 December 30, 2016 February 28, 2018

Total Project

Percent

Complete

Based on

Expenditures 87.4%

Based on Earned

Value N/A

Major Issue Status Comments

Construction Schedule Acceleration Open

MTACC’s decision to accelerate the

construction schedule to allow NYCT

pre-Revenue Testing to commence on

09/01/16 results in concerns over

additional cost and the ultimate ability to

achieve this goal.

Construction Quality and

Operational Readiness Open

MTACC has deviated from established

organizational and project procedures as

part of its schedule acceleration effort.

PMOC is concerned that these deviations

may result in reduced construction

quality and incomplete systems testing.

Date of Next Quarterly Meeting: TBD (Tentatively July 21, 2106)

* MTACC’s Current Working Budget

** Enterprise Level Project Execution Plan (ELPEP), reflecting median level of risk mitigation

Financial data based upon MTACC reporting through 4/30/2016

second avenue subway phase 1 project monthly report ......capacity to execute a project efficiently...

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